Title: The Role of Artificial Intelligence in Strengthening Financial Planning and Forecast Accuracy in Emerging Economies: The Nigerian Focus
Authors: Abitsokwa Kingsley Sallah
Mohammed Isa Kida & Zaphaniah Liuraman
Volume: 10
Issue: 6
Pages: 65-71
Publication Date: 2026/06/28
Abstract:
Artificial Intelligence has emerged as a transformative tool in modern financial systems, offering improved efficiency, predictive accuracy, and data-driven decision-making capabilities. This study examines the role of Artificial Intelligence in strengthening financial planning and forecast accuracy in Nigeria, with emphasis on its applications, benefits, and adoption challenges within an emerging economy context. The study highlights the limitations of traditional financial planning methods, which are often characterized by manual processes, human bias, and weak predictive capacity, leading to inefficiencies in budgeting, revenue estimation, and resource allocation. It further explores how Artificial Intelligence technologies such as machine learning, big data analytics, and predictive modeling enhance financial planning by improving the quality of forecasts, reducing uncertainty, and enabling real-time analysis of financial data. The study adopts a qualitative documentary research design and relies entirely on secondary data sourced from relevant journal articles, empirical studies, and industry reports on Artificial Intelligence and financial management in Nigeria and other emerging economies. Data were analyzed using content and thematic analysis, allowing for systematic synthesis and interpretation of existing findings. The study reveals that while Artificial Intelligence significantly improves forecast accuracy, budgeting efficiency, risk assessment, and cost management, its adoption in Nigeria remains at an early stage due to challenges such as high implementation costs, limited technical expertise, poor data quality, infrastructural deficiencies, and weak regulatory frameworks. It concludes that Artificial Intelligence holds strong potential to transform financial planning systems in Nigeria if these barriers are effectively addressed. The study recommends capacity building for financial professionals, improved investment in digital infrastructure, stronger data governance systems, and the development of clear ethical and regulatory policies to support Artificial Intelligence integration. Ultimately, the integration of Artificial Intelligence into financial planning processes is essential for improving economic decision-making and enhancing financial stability in Nigeria's evolving digital economy.